Updates to the Commercial Liability Insurance Program Policy
Effective June 27, 2022, our United States Commercial Liability Insurance Program policy will be updated with the following changes:
- Your policy can include a deductible if (i) your gross proceeds from sales of your products in the Amazon.com store exceed USD 1 million in the last 12 months, and (ii) the deductible is listed on your Certificate of Insurance;
- For single-member LLCs, the insured name can match either your legal entity name or the name you publicly use to identify your business (“trade name,” “doing business as,” or “DBA”);
Go to the ‘frequently asked questions’ section on the Business Insurance page for guidance on how to get commercial liability insurance.
Seller_LwUhSN3kUAXlg
Really? ZERO deductible required? I don’t know commercial liability well, but for most insurance that’s a bad bet to make: utilization goes way up when deductibles go out the window, and rates follow that trendline. Y’know, it’s possible to constantly raise the cost of doing business with you without raising fees, and it’s not like your competent sellers don’t notice that.
Seller_k9gKxYXv4ZEHu
How can they change the rules on the deductible at this late stage?
People have obtained policies as per the specifics laid out by Amazon a few months ago.
Regarding the deductible " The deductible for any policy must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance. "
Now the deductible is supposed to be zero unless gross proceeds are in excess of $1 million?
Seller_k9gKxYXv4ZEHu
Amazon should clarify whether they expect policies to be amended based on this change for the deductible.
They laid out the terms with very specific bullet points, people worked with their agents to get the policy just as was required now they casually throw this change into the mix.
Seller_CAoSCN07Wej2c
I’m an idiot, can someone explain this in layman’s terms please?
For example, say you are small fry (less than million turnover), and you have insurance coving up to 1 million. Does the new rule state in this case you cannot have a deducible?
What if you have insurance coving up to 2 million (so 1 million above requirements), can you have a deductible then?
